As mentioned from my previous article, “How to Invest Facebook, Google, Apple Stocks in the Philippines,” I started my global portfolio on eToro just recently and I’m happy to see great results. Many were excited and were asking what’s my strategy and how can they copy me. Chillax, I am sharing the answers here.
This is for those who are interested to copy my portfolio on eToro. eToro is founded in Europe and is now the leading social trading platform in the world.
Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptocurrencies, as well as trading CFD assets. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Before You Invest
I always recommend investing only less than 10% of your money on eToro because investing and trading is risky. The global market is always volatile although you can make money from if you have an effective strategy to achieve your goal.
My Effective Investing Strategy on eToro
It is a medium-long term investing of my own selected companies. I focus on buying positions but I also short sell whenever it’s reasonable. I invest my funds to the following asset allocation:
- Consistent Companies
- The Big Ones
- Tech Giants
- Food Sector
- Worth Trading
These companies are always consistent in terms of earnings and performance. I want to have more holdings of these firms because I find them less volatile compared to other stocks. Thus, I try to have regular investments of these stocks. Right now, these stocks include Mastercard and Visa.
The Big Ones
The Big Ones are well established companies that are less risky to fall down. In my portfolio, they include Microsoft and Amazon. I am confident with these companies and their future growth. To learn more, check out the Top 5 Reasons Why Invest Microsoft Stocks.
My tech giant stocks include Apple, Facebook, and Google. I use their services everyday so why not have holdings with them as well. I see a lot of potential with these companies that continue to acquire other tech companies.
Food is king. I want to have a small portion of my portfolio with this sector. Companies like Starbucks, Mc Donald’s and Chipotle are attractive right now. I will add positions with any of these companies when the time is right.
I use this portion for fair-to-buy stocks that are currently undervalued or those stocks that I can’t miss buying during dips, correction, IPO, or reasonable circumstances. In my list right now are Bank of America and Tapestry.
In this section, I use Technical Analysis to trade faster. I want to have regular profit and lock in gains quickly as much as possible.
Please ignore BTC from my portfolio as I will close that position permanently soon.
Important Things to Consider:
The chosen stocks and fund allocation changes over time. If you copied me on eToro, your investment will automatically be distributed proportionally following my latest portfolio allocation.
Minimum fund to copy me is $200. Great things start from small beginnings that’s why I want to welcome everyone, including beginners with small capital to invest with me.
Recommended Settings for New Copiers:
My portfolio has grown but I still want to remain open for those who want to start small. To effectively achieve gains, you may set up your Copy Fund as follows:
- Copy New Trades if your initial fund is $200
- Copy Open Trades if your initial fund is $1,000 or more
I encourage investors to add funds every month to grow more money. However, this is not required for my copiers, but only OPTIONAL. You still have the choice to add funds whenever you like.
TIME is the Essence
It is essential to invest time to let the companies grow and gain profit. Economic factors and trends can affect the stock price movements. Such factors can slow down growth or they can speed it up. In an instant, anything can happen. For that, I always share the following tips on investing:
Tips on Investing:
- Be patient.
- Hit your target.
- Do not be greedy.
- Forget your emotions.
- Invest only what you’re comfortable to lose.
Portfolio Management and Re-balancing
I am careful about selecting companies to invest my money. I make sure the companies have proven track records, excellent CEOs, and strong balance sheets.
I use a special financial software when screening these companies. The same is true with my portfolio analysis and forecasts. I will share these forecasts and analysis occasionally with my copiers.
A proven and time-tested effective technique I use is Dollar-Cost-Averaging wherein we add funds and invest periodically. It is a very effective strategy to add funds every month or every time NASDAQ100 and the SPX500 are down. I take these opportunities to buy positions.
To lock in gains constantly is another method I practice. It is a time when we hit the target of a certain stock. We use the profit to re-invest in another worthy company to give us another profit.
Let’s make some money! CopyTrade my portfolio on autopilot.